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Hi Cheeboo,
Just seen your post, and as it's unanswered, it looks like you may still need some advice.
You only need to worry about the reverse charge mechanism if you are registered for VAT (ie doing well if a sole practictioner !) and LinkedIn are billing you from another EU country outside the UK, probably Ireland.
If the answer to both is yes, this is what you enter on your next VAT return :
- record the net cost as normal in your books, so that the purchase value is recorded in VAT Return box 7 with all of your
other purchases.
- calculate 20% of the cost as notional VAT and add to both boxes 2 and 4. This has a neutral effect on your net liability,
but acknowledges that VAT would have been paid if the charge came from a UK trader.
You may have heard of this process being described as the "dangling debit" charge.
- add the value that you put in box 7 purchases to your box 6 sales too, to neutralise the "net" figures.
You should provide your VAT number to the vendor to place on your invoices.
Hope this helps
ps I see that you come from my neck of the woods !
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